Why Singapore Banks Have Rallied
Here are some reasons anchoring the banks’ stunning multi-year rallies. Higher interest rates between 2022 and 2024 significantly boosted the banks’ net interest margins (NIMs), driving strong growth in net interest income (NII) and fueling record net profits. Crucially, even as interest rates have eased, the banks have been posting near-record earnings. The three banks are still generating sizeable profits as seen in their first quarter report cards. DBS earned S$2.9 billion, ahead of OCBC’s S$2.0 billion and UOB’s S$1.4 billion....It has been fruitful being an investor in Singapore banks with DBS Group (SGX: D05), OCBC Limited (SGX: O39) and UOB Limited (SGX: U11) climbing sharply over the last five years.
In fact, both DBS and UOB just smashed through to new all-time highs yesterday (9 July 2026), touching S$70.27 and S$44.19 respectively.
The rally, however, has left valuations looking far less compelling than before.
We explore what long-term investors should consider – whether managing their positions or starting a fresh one.
